The operator of the Greater Union cinemas, Amalgamated Holdings (AHD), has foreshadowed that its first-half year profits will fall by 25 to 30 per cent.
David Seargeant, AHD managing director, said soft film products impacted the Australian cinema circuit, with admissions in December down by approximately 21 per cent.
Also, a “significant decline”of approximately 30 per cent in the performance of its cinemas division in Germany was also seen. The company blames the poor weather and the devaluation of the Euro against the Australian dollar. However, it highlighted that trading last year was boosted by the “record breaking” Avatar.
The decline has also continued in January, according to Seargeant as a result of the floods affecting its Queensland and northern NSW cinema and hotel operations.
“This, and the likely short term consultation of relatively soft film product, will impact on our first quarter trading result of 2011,” he said.